Environmental Impacts or Costs:
Some types of asset failure can cause environmental impacts. The costs related to these impacts may not always be easy to assess in monetary terms. However, some attempt should be made to assign some type of quantitative or qualitative value to the environmental consequences. An example of an environmental cost related to a failure would be a sewer pipe that leaked sewage into a waterway or onto public or private land. A value, either monetary or qualitative, would need to be placed on this type of consequence. If the leakage could result in a regulatory fine, the cost of the fine could be included. The cost of other environmental damage can be assessed qualitatively or a dollar amount can be estimated. A failure that could result in raw sewage being discharged into a major waterway should be given a high consequence rating; a failure that would have the potential to cause a more limited environmental impact could be given a medium rating; and a failure that would cause no environmental impact could be given a low rating.
Public Health Impacts or Costs:
Some types of asset failures can negatively impact public health and safety. As with environmental costs, the costs related to these impacts may not always be easy to assess in monetary terms. However, some attempt should be made to assign some type of monetary or qualitative value to the consequences.
Reduction in Level of Service:
The assets must be in working order to deliver the level of service desired by the water utility and its customers. If the assets fail, the ability to deliver the desired level of service may be compromised. An asset that has a major impact on the ability to meet the level of service would be considered more critical to the utility than an asset whose failure would not have a significant impact on level of service.
You have to renew that equipment so
that it's meeting the new tests
that are required.
--Louis Martinez, Albuquerque, NM